Flying Carpet Airlines operates the only early Monday morning flight from Stewarton, which arrives at Colberton at 9 a.m. Through market research, it discovers that the flight is taken by two groups of customers - busy business executives who must reach Colberton on Monday morning by 9 a.m. and students who have a more elastic demand and do not care about when they arrive. Given that Flying Carpet has a monopoly on this early morning flying route, what is the best way that it can price tickets to maximize profits?

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The Answer of Flying Carpet Airlines operates the only early Monday morning flight from Stewarton, which arrives at Colberton at 9 a.m. Through market research, it discovers that the flight is taken by two groups of customers - busy business executives who must reach Colberton on Monday morning by 9 a.m. and students who have a more elastic demand and do not care about when they arrive. Given that Flying Carpet has a monopoly on this early morning flying route, what is the best way that it can price tickets to maximize profits?

Flying Carpet Airlines Operates the Only Early Monday Morning Flight